RDP 9006: Wage Contracts, Sticky Prices and Exchange Rate Volatility: Evidence from Nine Industrial Countries Equation (3b)

w 1 t+n−1 = w 1 t +( 1−θ )( t−1 p c t+n−1 − t−1 p c t ) +θ( p c t+n−2 − t−1 P c t+n−2 ) +θ( p c t+n−3 − t−1 P c t+n−3 ) ⋮ +θ( p c t − t−1 p c t ) MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaqbaeWabuqaaa aabaGaae4DamaaCaaaleqabaGaaGymaaaakmaaBaaaleaacaqG0bGa ae4kaiaab6gaiiaacqWFsislcaqGXaaabeaakiabg2da9iaabEhada ahaaWcbeqaaiaaigdaaaGcdaWgaaWcbaGaaeiDaaqabaGccqGHRaWk daqadaqaaiaaigdacqWFsislcaqG4oaacaGLOaGaayzkaaWaaeWaae aadaWgaaWcbaGaaeiDaiab=jHiTiaabgdaaeqaaOGaaeiCamaaCaaa leqabaGaae4yaaaakmaaBaaaleaacaqG0bGaae4kaiaab6gacqWFsi slcaqGXaaabeaakiab=jHiTmaaBaaaleaacaqG0bGae8NeI0Iaaeym aaqabaGccaqGWbWaaWbaaSqabeaacaqGJbaaaOWaaSbaaSqaaiaabs haaeqaaaGccaGLOaGaayzkaaaabaGaey4kaSIaaeiUdmaabmaabaGa aeiCamaaCaaaleqabaGaae4yaaaakmaaBaaaleaacaqG0bGaae4kai aab6gacqWFsislcaqGYaaabeaakiab=jHiTmaaBaaaleaacaqG0bGa e8NeI0IaaeymaaqabaGccaqGqbWaaWbaaSqabeaacaqGJbaaaOWaaS baaSqaaiaabshacaqGRaGaaeOBaiab=jHiTiaabkdaaeqaaaGccaGL OaGaayzkaaaabaGaey4kaSIaaeiUdmaabmaabaGaaeiCamaaCaaale qabaGaae4yaaaakmaaBaaaleaacaqG0bGaae4kaiaab6gacqWFsisl caqGZaaabeaakiab=jHiTmaaBaaaleaacaqG0bGae8NeI0Iaaeymaa qabaGccaqGqbWaaWbaaSqabeaacaqGJbaaaOWaaSbaaSqaaiaabsha caqGRaGaaeOBaiab=jHiTiaabodaaeqaaaGccaGLOaGaayzkaaaaba GaeSO7I0eabaGaey4kaSIaaeiUdmaabmaabaGaaeiCamaaCaaaleqa baGaae4yaaaakmaaBaaaleaacaqG0baabeaakiab=jHiTmaaBaaale aacaqG0bGae8NeI0IaaeymaaqabaGccaqGWbWaaWbaaSqabeaacaqG JbaaaOWaaSbaaSqaaiaabshaaeqaaaGccaGLOaGaayzkaaaaaaaa@8F88@